Decree Law No. 74/2020
- Issuer: Presidency of the Council of Ministers
- Diploma Type: Decree Law
- Number: 74/2020
- Pages: 2 - 3
Summary in plain english
This Decree-Law amends the VAT (Value Added Tax) rate applicable to supplies of electricity in relation to certain levels of consumption and contracted powers at normal low voltage.What is going to change?
This Decree-Law provides that the level of consumption up to which the intermediate VAT rate will apply will be fixed at 100 kWh (Kilowatt/hour) per 30-day period and fixed at 150 kWh, also per 30-day period in the case of large households.
Large households are defined as households consisting of five or more persons.What advantages does it bring?
This decree-law aims to ensure that the VAT reduction on electricity is made in an environmentally sustainable way, thus fulfilling the objectives assumed by Portugal and the European Union.
This measure is also intended to be socially just and have a permissible financial impact.
By having a progressive tax, it is possible to stimulate energy efficiency in order to reduce the electricity bill.When does it enter into force?
This decree-law entered into force on 29 September 2020 and takes effect from 1 December 2020.
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